Which Funds Launched in September?

11 new funds were launched in September. We take a look at the new offerings and some more established alternatives

Annalisa Esposito 12 October, 2020 | 9:22AM
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September was a very busy month for fund houses, with 11 new active open-ended UK-domiciled funds launched, according to Morningstar Direct data. The number of new fund launches was more than double that of August, when there were just five new products created. Here we look through some of the newest funds and their more established alternatives: 

 

Name Inception  Morningstar Category
ES R&M European 30/09/2020 Europe ex-UK Equity
AXA Diversified 22/09/2020 GBP Mod Cautious Allocation
Janus Henderson Asset-Backed Securities 15/09/2020 Other Bond
Premier Miton Financials Capital Securities 14/09/2020 Other Bond
Premier Miton Strategic Monthly Income Bond 14/09/2020 GBP Flexible Bond
IFSL Sanlam Conservative 07/09/2020 GBP Mod Cautious Allocation
VT Freedom Balanced 07/09/2020 GBP Moderate Allocation
VT Freedom Cautious 07/09/2020 GBP Moderate Allocation
VT Freedom Defensive  07/09/2020 GBP Mod Cautious Allocation
VT Freedom Growth 07/09/2020 GBP Moderate Allocation
VT Freedom Growth 07/09/2020 GBP Mod Adventurous Allocation

River and Mercantile launched a European ex-UK equity fund, the ES River and Mercantile European, on September 30 for new hire James Sym, who joined the firm from Schroders. The fund, which is designed to be a core portfolio holding, will comprise between 30 and 50 stocks, with no restrictions on sector weightings.

It will also have strong ESG credentials and include only companies contributing in a positive way to their customers and society. Sym says: “There is a great opportunity in Europe today: the region has gone through four massive crises in the last ten years, which has created many attractive investment opportunities. Additionally, we see Europe’s response to the pandemic as the genesis of a brighter future for the region.”

Meanwhile, Sanlam expanded its multi-asset fund range, launching the IFSL Sanlam Conservative Fund. Run by Sanlam's chief investment officer Phillip Smeaton, the fund will offer the lowest risk rating in the range, investing in a mix of equities, fixed income and real estate. The ongoing charge is capped at 0.79%

Smeaton says: “Amid the ongoing uncertainty around the world, clients are in need of a range of strategies that suit their differing, and often shifting, attitudes to risk.”

Aside from a plethora of multi asset options, September's new launches included three fixed income offerings: Janus Henderson Asset-Backed Securities, Premier Miton Financials Capital Secutiries and Premier Miton Strategic Monthly Income bond.

Morningstar Rated Alternatives

For investors looking for more established alternatives, we have picked some funds which have already been rated by Morningstar analysts, meaning they already have a track record of at least three years.

In the Europe ex-UK Equity Morningstar Category, iShares Continental European Equity Index fund and Artemis European Opportunities, are rated Bronze and Silver respectively by Morningstar analysts. They have produced an annualised returns of 9.5% and 8.5% respectively over five years. Morningstar analyst Dimitar BoyadzhievClear points out that the iShare's ongoing charge is the lowest in its category at 0.06%. The fund tracks the FTSE World Europe ex UK Index, which comprises large- and mid-cap stocks across the continent including biggest holdings Nestle, Roche and Novartis. 

The Artemis fund, meanwhile, takes a value approach, investing in high-quality stocks but only at what the managers deem a reasonable price. Biggest holdings including Heineken and Danone. 

Elsewhere, an alternative fixed income option is Bronze-Rated BlackRock Global Funds Euro Short Duration Bond, which has produced five-year annualised returns of 5.25%. The portfolio, which invests in between 40 and 60 holdings, has at least 70% of assets invested in bonds whose average duration will not exceed three years.

Morningstar analyst Evangelia GkekaClear praises Michael Krautzberger, who has managed the strategy since June 2006. She says: "Krautzberger's expertise lays in combining the team's views, analysts' relative value ideas, and inputs from BlackRock's wider resources into a portfolio that takes an appropriate level of risk for its performance objective."

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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About Author

Annalisa Esposito  is a data journalist for Morningstar.co.uk